1. Introduction

GRD Finance recognizes that risk is an inherent part of financial activities. A strong Risk Management Policy enables systematic identification, evaluation, monitoring, and mitigation of risks to ensure financial stability, regulatory compliance, and sustainable business growth.

2. Objective

The objective of this Policy is to establish a robust framework that proactively identifies and manages risks, promotes operational effectiveness, protects stakeholder interests, and safeguards the company against potential losses.

3. Scope

This policy applies to all functions, processes, products, and activities undertaken by GRD Finance, including credit, operational, market, liquidity, compliance, strategic and emerging risk types.

4. Risk Management Framework

GRD Finance adopts a structured approach to risk management that includes risk identification, assessment, mitigation, monitoring, and reporting. The Risk Management Framework comprises the following components:

• Risk Identification – Identifying risks arising from internal and external sources.
• Risk Assessment – Evaluating potential impact and likelihood of risks.
• Risk Mitigation – Designing strategies to manage, transfer or reduce risk exposure.
• Risk Monitoring – Continuous tracking and reporting of risk levels and controls.
• Risk Reporting – Regular communication to senior management and the Board.

5. Risk Appetite & Limits

GRD Finance sets risk appetite and limits that define acceptable levels of risk in its business activities. Risk appetites are approved by the Board of Directors and reviewed periodically to ensure alignment with business strategies and market conditions.

6. Risk Governance

The Board of Directors oversees the risk management framework. A Risk Management Committee is appointed to support the Board in setting strategies, approving risk tolerances, and ensuring effective implementation of this policy across the company.

7. Types of Risks Covered

The key categories of risk covered by this Policy include:

• Credit Risk – Potential losses due to borrower default.
• Operational Risk – Losses from internal processes, systems or external events.
• Market Risk – Risks from movements in interest rates and market conditions.
• Liquidity Risk – Risks from inability to meet financial obligations.
• Compliance Risk – Risks of regulatory and legal non-compliance.

8. Roles & Responsibilities

Board of Directors: Approves and reviews the risk policy, appetite, and governance framework.
Risk Management Committee: Monitors risk exposures, reports to the Board, and ensures policy implementation.
Management & Business Units: Responsible for implementing controls, reporting risks, and taking corrective actions.

9. Review and Updates

This Risk Management Policy document is reviewed at least annually or as required due to regulatory changes, emerging risks, or changes in our business environment.

10. Contact & Support

If you have questions regarding this policy, please contact:

Risk Management Team, GRD Finance
Email: info@grd.finance
Phone: +91-9147759581